Capital Square expects bids of up to $2,500psf

The succesful transaction of Capital Square should help to lift property valuation in the vicinity, said DBS.

The expression of interest exercise for Capital Square at Church Street will close tomorrow. DBS belieces the office building could attract some more interests from institutional investors given the better office market outlook in Asia, including Singapore.

Market is expecting bids to come in at about $2,300 psf to as high as $2,500 psf for the property, valuing it at $889m to $1b. DBS believes that the successful transaction of Capital Square, another Grade A office building, should help to lift the overall Grade A capital values.

With current cap rate compression and strong recovery in capital value, commercial land lords should see an uplift in RNAV. We believe a faster reflation can be found in the commercial landlords.